Walmart to pay N.J. $775,000 in fines

Walmart, the world’s largest retailer, has agreed to pay New Jersey $775,000 in fines and revise its business practices following a ruling that the company sold expired infant formula and over-the-counter drugs to customers.

The settlement, which resolves a 2008 lawsuit filed by state Office of the Attorney General, came as the retailer was about to go on trial in Hudson County over four remaining counts of "unconscionable business practices." A judge in August found that the state had proven its earlier claim that the company sold expired products and that sale items scanned at incorrect prices.

"This settlement puts the onus on Walmart to check expiration dates when stocking its shelves, to periodically recheck stocked items, and then remove from sale any infant formula or non-prescription drugs that are past expiration," Attorney General Paula Dow said in a statement.

"A responsible retailer should do no less and we expect full compliance at Walmart’s 54 New Jersey stores."

Walmart, which admitted no liability or wrongdoing in reaching the settlement, could not be reached for comment Tuesday.

Under the terms of the settlement, which was announced Tuesday by Dow’s office, Walmart will pay $500,000 in civil penalties, plus reimburse the state $160,000 for legal expenses and $40,000 for investigative costs. The retailer will also put up $75,000 to fund a consumer education program and develop policies to prevent future violations.

The state sued Walmart, Target and Drug Fair in September 2008, claiming that the retailers had violated state consumer laws by selling out of date products and charging more than the listed price for some items. Target settled with the state in 2009, agreeing to pay $375,000 in fines, while Drug Fair went out of business before the lawsuit could be resolved.

"Whether the company is the world’s largest retailer or a mom-and-pop operation, we will act whenever laws are violated and the well-being of our consumers are at risk," Thomas R. Calcagni, acting director of the New Jersey Division of Consumer Affairs said in a statement.